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Non-Executive Appointment and California Oil Prod.

23rd Jan 2013 07:00

RNS Number : 1430W
Sefton Resources Inc
23 January 2013
 

23 January 2013

Sefton Resources, Inc.

("Sefton" or the "Company")

 

 

Non-Executive Director appointed

and California oil production

 

Sefton Resources (AIM: SER), the independent oil and gas exploitation and production company with interests in California and Kansas has announced a key appointment and reported on oil production in California.

 

 

Highlights

 

·; Dr. Keith A Morris appointed Non-Executive Director.

 

 

·; Final oil production numbers for California for the month of December 2012 were 133 barrels of oil per day (BOPD) compared to 114 BOPD in November 2012.

 

 

Jim Ellerton, Chairman of the Board said:

 

"Sefton has been looking to add further Non-Executive Directors and welcomes Keith Morris to the board who brings a strong background in the international oil and gas industry and successful track record as a specialist senior investment analyst. Certainly in the City, Keith Morris needs little introduction as he has been working as an oil & gas analyst for the past 25 years rising to become Director of Equity Research - Oil & Gas Sector at Investec Bank. In recent years, Keith has analysed or reviewed more than 500 oil and gas propositions and so his knowledge of the industry will be invaluable as Sefton looks for M&A opportunities beyond the US."

 

For further information please visit www.seftonresources.com or contact:

John James Ellerton, Chairman of the Board
Tel: 001 (303) 759 2700
Dr Michael Green, Investor Relations
Tel: 0207 448 5111
Nick Harriss, Nick Athanas, Allenby Capital (Nomad)
Tel: 0203 328 5656
Neil Badger, Dowgate Capital Stockbrokers (Broker)
Tel: 01293 517744
Alex Walters, Cadogan PR
Tel: 07771 713608

 

 

 

 

Appointment

 

The board has appointed Keith Morris as a Non-Executive Director.

 

Keith Morris

 

Keith studied Geology at the University of Bristol and subsequently went on to gain a PhD at Reading University. Whilst doing that research work, he developed a working relationship with oil companies working in the North Sea which led to a position with British Gas. Subsequently Keith moved to Kerr McGee Oil UK as Senior Geologist where he evaluated the North Sea portfolio and made applications for UK licensing rounds.

 

In 1984, he joined Lasmo as the Senior Explorationist - New Ventures where he was responsible for the technological and economic evaluation on a global basis and prepared proposals for the board which led to a major gas discovery in Pakistan. Keith's City career began in 1987 working at stockbrokers Carr, Kitcat & Aitken where was an Oil Analyst initially looking after the UK E&P sector and before being promoted to Senior Oil Analyst in charge of the pan-European coverage. In 1993, Keith became Head of European Oil & Gas equity research at Schroder Securities.

 

By the end of 1996,Keith had moved to BNP Paribas to take over the mantle of Head of Oil & Gas equity research where he worked on numerous corporate transactions. However since 2004, Keith has been at Evolution Securities where he has been responsible not just for the research of the UK E&P sector but also helped raise more than £500m for clients. At Evolution, Keith rose to become Director of Equity Research - Oil & Gas Sector and continued in the same role following the acquisition at Investec Bank. At the end of 2012, Keith took early retirement from Investec but remains a consultant.

 

Pursuant to Schedule 2 (g) of the AIM Rules for Companies the following is disclosed in relation to Keith Adam Morris:

 

Keith Adam Morris (age 58):

 

Current Directorships and Partnerships Held

Directorships and Partnerships held in the previous 5 years

Plus 8 Consulting Limited

None

Warfield Group Limited

Warfield Woodland Limited

Warfield Homes Limited

Warfield Park Homes Limited

 

 

There is no further information required to be disclosed in respect of the above appointment pursuant to Schedule Two paragraph (g) of the AIM Rules.

 

 

California oil production

 

The final oil production numbers for the month of December 2012 were 4,124 barrels of oil produced or 133 barrels of oil per day compared with 114 BOPD in November 2012. In December 2012 there was a 5.28% shrinkage to API specification and with basic sediment and water (BS&W) removed. Shrinkage is lower in the warmer months but increased in December because the cold weather entrains more water in oil. Final oil production figures for December 2012 have been submitted to the Californian Division of Oil, Gas & Geothermal Resources ("DOGGR") for posting on its website. The table below shows the production numbers for the last five months, including the shrinkage percentage.

 

Net oil production figures reported to the DOGGR

Month

DOGGR total production

barrels of oil

Average number of barrels of oil per day

Preliminary production numbers

Percentage shrinkage of preliminary numbers

August 2012

3,002

96

3,039

1.21%

September 2012

3,109

103

3,244

4.16%

October 2012

3,478

112

3,573

2.66%

November 2012

3,422

114

3,593

4.76%

December 2012

4,124

133

4,354

5.28%

 

 

 

 

About Sefton

 

Sefton Resources is an oil and gas exploitation and production company with significant scope to grow its three projects in onshore United States that are 100%-owned and operated. The business strategy is to acquire long life, controlling interests, partially developed reserves and then to seek maximize shareholder value through asset development using the Company's own funds initially and then involve third party capital, farm-out or merger.

 

Currently Sefton has a market capitalisation of approximately £7 million and was valued by independent experts to have a PV(10) of $278 million (approximately £173 million) based on its assets as at the end of December 2011. The key operational focus at this time is on developing three opportunities in California and Kansas:

 

Enhanced Oil Recovery (EOR) projects in California

 

Sefton owns 100% of two oil fields In East Ventura County - Tapia (heavy gravity oil) and Eureka Canyon (medium gravity oil). Estimated 2011 year-end proved reserves stood at 3.8 million barrels. The current operational focus is to fully develop Tapia with an active well drilling and work-over programme in conjunction with the use of cyclic steam production enhancement. Sefton engaged Petrel to construct a geologic model to be utilised by Dr Farouq Ali, a recognised expert, in a thermal stimulation study to optimise production and reserve development for Tapia. Of all Sefton's operations, Tapia generates the majority of the revenues, at this time.

 

Exploration and Production in Kansas

 

In East Kansas, Sefton has a significant and growing acreage position (Leavenworth and Anderson Counties) in the Forest City Basin, where conventional oil and gas deposits as well as Coal Bed Methane (CBM) prospects have been identified. The current operational focus is in Leavenworth County where a workover and recompletion programme is under way that will see oil, gas and CBM wells brought back into production with first revenues from oil whilst additional gas assets are being assembled for the future development as all the pipelines become operational.

 

Natural Gas Transmission in Kansas

 

Three gas pipelines have been acquired by Sefton. The LAGGS pipeline in Leavenworth County has been fully refurbished and is now connected to the Southern Star Interstate Pipeline system which allows sales outside the local Kansas market. Plans are to join the Vanguard pipeline to the LAGGS system in Leavenworth County which will increase the scale of this gathering system. This means Sefton is able to transport its own gas as well as third party gas to market and generate additional revenues.

 

A third pipeline in Anderson County is planned to be connected to an interstate pipeline system in the future to provide additional opportunities for redevelopment of oil, equity and third party gas.

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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